What Are Virginia Bank Statement Loans?
Virginia bank statement loans are also known to some as stated income loans. They are a type of non-qualifying (non-QM) mortgage loan. While conventional loans verify your income through W2s, tax returns, and pay stubs, a bank statement loan verifies your income using your 12- or 24-month bank statements. Even though some refer to bank statement loans as “stated income loans” they are not because we are verifying your income through your bank statement deposits to demonstrate your “ability-to-repay.”
A problem many borrowers face when trying to get approved for a home loan is that they don’t have pay stubs. This typically includes those who are self-employed, business owners, gig workers, and retirees. While these individuals do have tax returns, these forms do not accurately show net income due to write-offs and deductions. Because of these deductions, the net income shown on a tax return is not a true representation of how much they’re bringing in, which makes for a difficult underwriting process when applying for a conventional loan.
Griffin Funding offers non-QM loan products such as the bank statement loan program to verify your income in other ways. By allowing income verification through bank statements, we can help more qualified borrowers secure a home loan.
What Areas Are VA Bank Statement Loans Available in?
We offer Virginia bank statement loans for borrowers all over the state, including:
- Virginia Beach
- And more!
Whether the house you want to purchase is located in the suburbs of Chantilly or the City of Alexandria, we can help you secure a mortgage.
Why Should You Consider a Bank Statement Loan in Virginia?
There are many benefits of Virginia bank statement mortgages, including:
- No tax returns, pay stubs, or W2s are necessary for qualification.
- The option between a 12-month bank statement loan or a 24-month program.
- Down payments as low as 10% allowed.
- Allows for higher debt-to-income (DTI) ratios (potentially up to 55%).
- Fixed-rate and adjustable mortgage loan options are available.
What Are the Bank Statement Loan Requirements in Virginia?
The bank statement loan requirements in Virginia are as follows:
- You must be self-employed for a minimum of two years.
- You must be able to provide a 10% down payment or more.
- You have four months of mortgage payments available in your bank account for loan amounts under $1 million.
- You have a credit score of at least 620.
- You are able to provide business profit and loss (P&L) statements.
Note that these are the same as the requirements for bank statement loans in any other state.
How Much Do You Have to Put Down on a Bank Statement Loan?
Down payment requirements vary depending on the total value of the home and your personal financial situation. You can get a bank statement loan for as little as 10% down. However, you can significantly reduce your monthly payments by putting down more if you have the funds available.
Other Non-QM Loans
If bank statement loans aren’t the right mortgage solution for you, you may also qualify for one of our other loans and self-employed mortgage products, including:
FHA Loans for First-Time Homebuyers: FHA loans are only available for first-time homebuyers. This program is an excellent option for borrowers who cannot afford to put down 20%. Instead, you can qualify for a loan with as little as 3.5% down. The FHA loan does require PMI insurance, which protects the lender in the event that the borrower cannot pay off the loan.
Asset Based Loans: Asset-based loans are ideal for borrowers who don’t have income or have low income, but have high assets. Instead of using your income to qualify for a loan, you can leverage your assets, which include your checking accounts, savings accounts, and investment accounts.
DSCR Loans: Debt-Service-Coverage-Ratio loans are ideal for borrowers who own investment properties or who want to purchase investment properties. Instead of using your income to qualify for a loan, you can use the rental income of the property to qualify.
VA Loans: VA loans are only available for qualifying active duty service members, veterans, and surviving spouses. These loans are ensured by the Department of Veteran Affairs and offer lower interest rates and the option to put no money down.
How to Apply for a VA Bank Statement Loan
Purchasing your dream house in Virginia is much easier with Griffin Funding thanks to our flexible underwriting requirements for bank statement loans and our exceptional team of loan officers. Here’s how you can apply for a Virginia bank statement loan:
- Save for a downpayment: You may only need a 10% down payment when you obtain a Virginia bank statement loan. However, you can reduce your monthly mortgage payment by putting down a larger amount. While you might not know what 10% down would be if you haven’t started looking at homes, you can find the average home price for the area you’re interested in online, and multiply it by 0.1.
- Get Pre-approved: Pre-approval is the first step to obtaining a mortgage. When you get pre-approved, you’ll know exactly how much you can afford, which makes searching for your next home easier.
- Find a House: Working with an experienced realtor can help you find the right house in your budget.
- Apply for a home loan with Griffin Funding and get approved: Apply for your mortgage online or over the phone. Our loan officers will work with you to move through this process as quickly and painlessly as possible.
- Make an offer: Express your interest in the home and have your realtor put in an official offer. Ultimately it’s up to the seller to decide which offer to accept.
- Close on the House: Once your offer is accepted on a home, you can move forward with the closing process and move in.
To help you take advantage of time-sensitive real estate opportunities, Griffin Funding strives to complete this process within 30 days or less.
Find out if You Qualify for a VA Bank Statement Loan
Don’t let the strict requirements of conventional loans stop you from obtaining a mortgage and buying your first, second, or third home. With Griffin Funding’s bank statement loan mortgage loans in Virginia, you can obtain a mortgage whether you’re self-employed, retired, or a small business owner.
Ready to apply for a bank statement loan? Complete an application online today.